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What's Going On With Informatica Stock?

Author: Erica Kollmann | April 15, 2024 01:15pm

Informatica Inc. (NYSE:INFA) shares are trading lower Monday amid increased volatility following reports suggesting Salesforce is in talks to buy the company. Here's a look at what to know.

The Details:

Salesforce, Inc. (NYSE:CRM) is reportedly in advanced negotiations to acquire Informatica, according to a Wall Street Journal report from Friday. Reportedly, the discussed acquisition amount is lower than Informatica's recent closing stock price which may be complicating the matter. 

RBC Capital analyst Matthew Hedberg reiterated Informatica with an Outperform rating and $41 price target on Monday.

Informatica shares are dipping on heavy trading volume Monday. According to data from Benzinga Pro, more than 4.08 million shares have already been traded in the session, compared to the stock’s 100-day average of 1.625 million shares.

Related News: What’s Going On With Palantir Stock?

Is INFA A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Informatica‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Informatica does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 16.59%, you'll need to buy a share of Orchid Island Cap by the April 29. Once done, you can expect to receive a nominal payout of $0.12 on May. 30.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Informatica will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

INFA Price Action: According to Benzinga Pro, Informatica shares are down 8.6% at $35.17 at the time of publication Monday.

Image: Pete Linforth from Pixabay

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